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After studying this chapter, you should be able to:Explain the
main techniques used in employment planning and forecasting.List
and discuss the main outside sources of candidates.Effectively
recruit job candidates.Name and describe the main internal sources
of candidates.Develop a help wanted ad.Explain how to recruit a
more diverse workforce.* 2005 Prentice Hall Inc. All rights
reserved.5*
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The Recruitment and Selection ProcessDecide what positions youll
have to fill through personnel planning and forecasting.Build a
pool of candidates for these jobs by recruiting internal or
external candidates.Have candidates complete application forms and
perhaps undergo an initial screening interview.Use selection
techniques like tests, background investigations, and physical
exams to identify viable candidates.Decide who to make an offer to,
by having the supervisor and perhaps others on the team interview
the candidates.
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Steps in Recruitment and Selection ProcessFigure 51 The
recruitment and selection process is a series of hurdles aimed at
selecting the best candidate for the job.
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Planning and ForecastingEmployment or personnel planningThe
process of deciding what positions the firm will have to fill, and
how to fill them.Succession planningThe process of deciding how to
fill the companys most important executive jobs.What to
forecast?Overall personnel needsThe supply of inside candidatesThe
supply of outside candidates
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Linking Employers Strategy to PlansFigure 52
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Forecasting Personnel NeedsTrend analysisThe study of a firms
past employment needs over a period of years to predict future
needs.Ratio analysisA forecasting technique for determining future
staff needs by using ratios between a causal factor and the number
of employees needed.Assumes that the relationship between the
causal factor and staffing needs is constant
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The Scatter PlotScatter plot A graphical method used to help
identify the relationship between two variables.
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Determining the Relationship Between Hospital Size and Number of
NursesFigure 53
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Drawbacks to Scatter PlotsThey focus on projections and
historical relationships, and assume that the firms existing
structure and activities will continue into the future.They
generally do not consider the impact the companys strategic
initiatives may have on future staffing levels.They tend to support
compensation plans that reward managers for managing ever-larger
staffs, and will not uncover managers who expand their staffs
irrespective of strategic needs.They tend to bake in the
nonproductive idea that increases in staffs are inevitable.They
tend to validate and institutionalize existing planning processes
and ways of doing things, even in the face of rapid change.
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Using Computers to Forecast Personnel RequirementsComputerized
forecastsThe use software packages to determine of future staff
needs by projecting sales, volume of production, and personnel
required to maintain a volume of output.Generates figures on
average staff levels required to meet product demands, as well as
forecasts for direct labor, indirect staff, and exempt
staff.Typical metrics: direct labor hours required to produce one
unit of product (a measure of productivity), and three sales
projectionsminimum, maximum, and probable.
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Forecasting the Supply of Inside CandidatesQualifications
inventoriesManual or computerized records listing employees
education, career and development interests, languages, special
skills, and so on, to be used in selecting inside candidates for
promotion.
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Manual Systems and Replacement ChartsPersonnel replacement
chartsCompany records showing present performance and promotability
of inside candidates for the most important positions.Position
replacement cardA card prepared for each position in a company to
show possible replacement candidates and their qualifications.
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Management Replacement Chart Showing Development Needs of Future
Divisional Vice PresidentFigure 54
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Computerized Information SystemsHuman Resource Information
System (HRIS)Computerized inventory of information that can be
accessed to determine employees background, experience, and skills
that may include:Work experience codesProduct or service
knowledgeIndustry experience Formal education
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The Matter of Privacy of HR InformationThe need to ensure the
security of HR informationThere is a lot of HR information to keep
secure.Control of HR information can be established through the use
of access matrices that limit users.Legal considerations: The
Federal Privacy Act of 1974 gives employees rights regarding who
has access to information about their work history and job
performance.
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Forecasting the Supply of Outside CandidatesFactors impacting
the supply of outside candidatesGeneral economic conditionsExpected
unemployment rateSources of informationPeriodic forecasts in
business publicationsOnline economic projectionsU.S. Congressional
Budget Office (CBO)Bureau of Labor StatisticsU.S. Department of
Labor: O*NetOther federal agencies
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Effective RecruitingExternal factors affecting
recruiting:Looming undersupply of workersLessening of the trend in
outsourcing of jobsIncreasingly fewer qualified candidatesInternal
factors affecting recruiting:The consistency of the firms
recruitment efforts with its strategic goalsThe available
resources, types of jobs to be recruited and choice of recruiting
methodsNonrecruitment HR issues and policiesLine and staff
coordination and cooperation
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Effective Recruiting (contd)Advantages of centralizing
recruitmentStrengthens employment brandEase in applying strategic
principlesReduces duplication of HR activiitesReduces the cost of
new HR technologiesBuilds teams of HR expertsProvides for better
measurement of HR performanceAllows for the sharing of applicant
pools
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Sample Acceptable Questions Once A Conditional Offer Is
MadeFigure 55 Do you have any responsibilities that conflict with
the job vacancy?How long have you lived at your present address?Do
you have any relatives working for this company?Do you have any
physical defects that would prevent you from performing certain
jobs where, to your knowledge, vacancies exist?Do you have adequate
means of transportation to get to work?Have you had any major
illness (treated or untreated) in the past 10 years?Have you ever
been convicted of a felony or do you have a history of being a
violent person? (This is a very important question to avoid a
negligent hiring or retention charge.)Educational background. (The
information required here would depend on the job-related
requirements of the position.)Source: Kenneth Sovereign, Personnel
Law (Upper Saddle River, NJ: Prentice Hall, 1999), p. 50.
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Measuring Recruiting EffectivenessWhat to measure and how to
measureHow many qualified applicants were attracted from each
recruitment source?Assessing both the quantity and the quality of
the applicants produced by a source.High performance
recruitingApplying best-practices management techniques to
recruiting.Using a benchmarks-oriented approach to analyzing and
measuring the effectiveness of recruiting efforts such as employee
referrals.
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Selection Devices that Could be used to Initially Screen
ApplicantsTable 51 Source: Kevin Carlson et al., Recruitment
Evaluation: The Case for Assessing the Quality of Applicants
Attracted, Personnel Psychology 55 (2002), p. 470.Note: *Higher is
better.
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Recruiting Yield PyramidFigure 56 Recruiting yield pyramidThe
historical arithmetic relationships between recruitment leads and
invitees, invitees and interviews, interviews and offers made, and
offers made and offers accepted.
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Internal Sources of Candidates: Hiring from
WithinAdvantagesForeknowledge of candidates strengths and
weaknessesMore accurate view of candidates skillsCandidates have a
stronger commitment to the companyIncreases employee moraleLess
training and orientation requiredDisadvantagesFailed applicants
become discontentedTime wasted interviewing inside candidates who
will not be consideredInbreeding of the status quo
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Finding Internal CandidatesJob postingPublicizing an open job to
employees (often by literally posting it on bulletin boards) and
listing its attributes.Rehiring former employeesAdvantages:They are
known quantities.They know the firm and its
culture.Disadvantages:They may have less-than positive
attitudes.Rehiring may sent the wrong message to current employees
about how to get ahead.
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Finding Internal Candidates (contd)Succession planningThe
process of ensuring a suitable supply of successors for current and
future senior or key jobs.Succession planning steps: Identifying
and analyzing key jobs.Creating and assessing candidates.Selecting
those who will fill the key positions.
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Outside Sources of CandidatesAdvertisingThe Media: selection of
the best medium depends on the positions for which the firm is
recruiting.Newspapers (local and specific labor markets)Trade and
professional journalsInternet job sitesMarketing
programsConstructing an effective adWording related to job interest
factors should evoke the applicants attention, interest, desire,
and action (AIDA) and create a positive impression of the firm.
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Help Wanted AdFigure 57 Source: The Miami Herald, March 24,
2004, p. SF.
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Outside Sources of Candidates (contd)Types of employment
agencies:Public agencies operated by federal, state, or local
governmentsAgencies associated with nonprofit
organizationsPrivately owned agencies
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Outside Sources of Candidates (contd)Reasons for using a private
employment agency:When a firm doesnt have an HR department and is
not geared to doing recruiting and screening.The firm has found it
difficult in the past to generate a pool of qualified
applicants.The firm must fill a particular opening quickly.There is
a perceived need to attract a greater number of minority or female
applicants.The firm wants to reach currently employed individuals,
who might feel more comfortable dealing with agencies than with
competing companies.The firm wants to cut down on the time its
devoting to recruiting.
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Outside Sources of Candidates (contd)Avoiding problems with
employment agencies:Give the agency an accurate and complete job
description.Make sure tests, application blanks, and interviews are
part of the agencys selection process.Periodically review data on
candidates accepted or rejected by your firm, and by the agency.
Check on the effectiveness and fairness of the agencys screening
process.Screen the agency. Check with other managers or HR people
to find out which agencies have been the most effective at filling
the sorts of positions needed to be filled.Review the Internet and
a few back issues of the Sunday classified ads to discover the
agencies that handle the positions to be filled.
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Temp Agencies and Alternative StaffingBenefits of TempsPaid only
when workingMore productiveNo recruitment, screening, and payroll
administration costs Costs of TempsFees paid to temp agenciesLack
of commitment to firm
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Concerns of Temp EmployeesTreatment by employers in a
dehumanizing, impersonal, and ultimately discouraging
way.Insecurity about their employment and pessimistic about the
future.Worry about their lack of insurance and pension
benefits.Being misled about their job assignments and in particular
about whether temporary assignments were likely to become full-time
positions.Being underemployed (particularly those trying to return
to the full-time labor market).In general they were angry toward
the corporate world and its values; participants repeatedly
expressed feelings of alienation and disenchantment.
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Guidelines for Using Temporary EmployeesFigure 58 Do not train
your contingent workers. Do not negotiate the pay rate of your
contingent workers. Do not coach or counsel a contingent worker on
his/her job performance.Do not negotiate a contingent workers
vacations or personal time off. Do not routinely include contingent
workers in your companys employee functions.Do not allow contingent
workers to utilize facilities intended for employees.Do not let
managers issue company business cards, nameplates, or employee
badges to contingent workers without HR and legal approval.Do not
let managers discuss harassment or discrimination issues with
contingent workers.Do not discuss job opportunities and the
contingent workers suitability for them directly. Do not terminate
a contingent worker directly.Source: Adapted from Bohner and
Selasco, Beware the Legal Risks of Hiring Temps, Workforce, October
2000, p. 53.
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Working with a Temp AgencyInvoicing. Get a sample copy of the
agencys invoice. Make sure it fits your companys needs.Time sheets.
With temps, the time sheet is not just a verification of hours
worked. Once the workers supervisor signs it, its usually an
agreement to pay the agencys fees.Temp-to-perm policy. What is the
policy if the client wants to hire one of the agencys temps as a
permanent employee?Recruitment of and benefits for temp employees.
Find out how the agency plans to recruit what sorts of benefits it
pays.Dress code. Specify the attire at each of your offices or
plants.Equal employment opportunity statement. Get a statement from
the agency that it is not discriminating when filling temp
orders.Job description information. Have a procedure whereby you
can ensure the agency understands the job to be filled and the sort
of person you want to fill it.
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Offshoring/Outsourcing White-Collar and Other JobsSpecific
issues in outsourcing jobs abroadPolitical and military
instabilityLikelihood of cultural misunderstandingsCustomers
security and privacy concernsForeign contracts, liability, and
legal concernsSpecial training of foreign employeesCosts associated
with companies supplying foreign workers
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Outside Sources of Candidates (contd)Executive recruiters
(headhunters)Special employment agencies retained by employers to
seek out top-management talent for their clients.Contingent-based
recruiters collect a fee for their services when a successful hire
is completed.Retained executive searchers are paid regardless of
the outcome of the recruitment process.Internet technology and
specialization trends are changing how candidates are attracted and
how searches are conducted.
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Guidelines for Choosing a RecruiterMake sure the firm is capable
of conducting a thorough search.Meet the individual who will
actually handle your assignment.Ask how much the search firm
charges.
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Outside Sources of Candidates (contd)On demand recruiting
services (ODRS)A service that provides short-term specialized
recruiting to support specific projects without the expense of
retaining traditional search firms.
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Outside Sources of Candidates (contd)College
recruitingRecruiting goalsTo determine if the candidate is worthy
of further considerationTo attract good candidatesOn-site
visitsInvitation lettersAssigned hostsInformation packagePlanned
interviewsTimely employment offerFollow-upInternships
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Outside Sources of Candidates (contd)Employee
referralsApplicants who are referred to the organization by current
employeesReferring employees become stakeholders.Referral is a
cost-effective recruitment program.Referral can speed up
diversifying the workforceWalk-insDirect applicants who seek
employment with or without encouragement from other
sources.Courteous treatment of any applicant is a good business
practice.
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Outside Sources of Candidates (contd)Recruiting via the
InternetMore firms and applicants are utilizing the Internet in the
job search process.Advantages of Internet recruitingCost-effective
way to publicize job openingsMore applicants attracted over a
longer periodImmediate applicant responsesOnline prescreening of
applicantsLinks to other job search sitesAutomation of applicant
tracking and evaluation
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Selected Recruitment Web SitesFigure 59 Source: HR Magazine,
November 2003.
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Ineffective and Effective Web AdsFigure 510
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Issues in Recruiting a More Diverse WorkforceSingle
parentsProviding work schedule flexibility.Older workersRevising
polices that make it difficult or unattractive for older workers to
remain employed.Recruiting minorities and womenUnderstanding
recruitment barriers.Formulating recruitment plans.Instituting
specific day-to-day programs.
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Issues in Recruiting a More Diverse Workforce
(contd)Welfare-to-workDeveloping pre-training programs to overcome
difficulties in hiring and assimilating persons previously on
welfare.The disabledDeveloping resources and policies to recruit
and integrate disable persons into the workforce.
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Developing and Using Application FormsApplication formThe form
that provides information on education, prior work record, and
skills.Uses of information from applicationsJudgments about the
applicants educational and experience qualificationsConclusions
about the applicants previous progress and growthIndications of the
applicants employment stabilityPredictions about which candidate is
likely to succeed on the job
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HR Scorecard for Hotel Paris International Corporation*Figure
511 Note: *(An abbreviated example showing selected HR practices
and outcomes aimed at implementing the competitive strategy, To use
superior guest services to differentiate the Hotel Paris properties
and thus increase the length of stays and the return rate of guests
and thus boost revenues and profitability)